Natixis
Australian nonbanks' song remains the same
Every year, KangaNews hosts Australia’s leading nonbank lenders at a sector roundtable discussion – supported since 2019 by Natixis. In keeping with the unique circumstances of 2020, this year’s roundtable was conducted via videoconference. While market conditions have changed dramatically in the past 12 months, the sector is able to tell the same story of solid funding foundations and sound credit quality.
Mining sector gets its day in the sun
The mining sector has a critical role to play in supplying the raw materials needed for transition, as well as those that support global prosperity and growth. While it has often been overlooked in sustainable finance, work on the “green enabling” economy means the situation is changing – and Australia is at the forefront of this evolution.
Private capital on the cards for nonbanks
Having emerged from the most challenging origination environment in many years – and despite lingering lending market challenges – Australia’s nonbank lenders are once more exploring diversifying further into private markets to find incremental funding dollars. Intermediaries say there is a waiting pool of deployable capital and while only a few issuers have gone public with new structures, others are considering their next moves.
Cautious optimism turns nonbanks' minds to funding scale
As recently as 2023, the lingering impact of the term funding facility was making originating new mortgage volume highly challenging for Australia’s biggest nonbank lenders. In August 2024, KangaNews and Natixis CIB hosted sector leaders at a roundtable discussion in Sydney, finding that the conversation has moved back to managing growth – albeit while keeping an eye on a challenging economic situation.
Australian banks continue to target green issuance at Europe
National Australia Bank chose to issue a green bond in its return to senior issuance in the euro market. The issuer believes it was rewarded with a 2-3 basis point greenium but acknowledges that it benefited from the relative rarity of Australian major-bank senior-unsecured euro issuance as well as the scarcity of labelled issuance from the majors in any market.
Supply and demand dynamics on the move for New Zealand banks
In June, for the first time, KangaNews and Natixis CIB brought together the treasurers from the big-four New Zealand banks to discuss economic conditions, a funding outlook that has seen the banks take a step back from capital markets, and a global demand environment that would welcome new supply from New Zealand.
nonbank Yearbook 2024
KangaNews's eighth annual guide to the business and funding trends in Australia's nonbank financial-institution sector.
